Addressing Green Myopia by bundling Technology with Awareness in Emerging

Economies: Some learning from failure stories in India

Artee Aggrawal

Richa Chaudhary

Dr. R. Gopal

GO-GREEN STRATEGY AND DIFFERENT STAKEHOLDERS

PLANET +

PEOPLE +

PROFIT

PEOPLE + PROFIT

PROFIT MAXIMISATION

Twentieth Century

Late Nineties

EighteenthCentury

GREEN TECHNOLOGY

Environmental technology or green technology or clean technology (abbreviated as cleantech) is the application of the environmental science to conserve the natural environment and resources, and to curb the negative impacts of human involvement. Sustainable development is the core of environmental technologies. When applying sustainable development as a solution for environmental issues, the solutions need to be socially equitable, economically viable, and environmentally sound. The technologies include, but are not limited to, the following areas:

Recycling Water Purification Sewage Treatment Environmental remediation Solid Waste Management Renewable Energy

GREEN MARKETING

Green Marketing has been an important academic research topic since its inception.

Attention was drawn to the subject in late 1970’s when the American Marketing Association organized a workshop on Ecological Marketing in 1975

First definition

The implementation of marketing programs directed at the environmentally conscious market segment (Henion 1976)

Evolved to

The process of planning, implementing and controlling the development, pricing, promotion and distribution of products in a manner that satisfies the following criteria-

Customer needs are metOrganizational goals are attainedAnd the processes are compatible with

ecosystems (Fuller 1999)

According to Ottman (1993) Green Marketing serves two key objectives-

To develop products that incorporates consumer need for convenience, affordable prices and performance while having minimal impact on the environment

To project an image of high quality, including environmental aspects, both in regards to product attributes and the manufacturer's track record for environmental compliance.

First consumer survey was conducted by Vandermerwe and Ollif stating that more then 92% European multinationals clamed to have changed their products in response to green concern.

Green products introduction increased by more then double to 11.4% of all new household products in the USA between 1989 and 1990 and continued to rise to 13.4% in 1991

However this optimistic start to the 1990s was not sustained (Peattie and Crane 2005).

A 2001 survey conducted by Roper indicates that during the 1990’s approximately 2/3 of all consumers believed that environmental protection and economic development can go hand in hand. While perception is important, actual behavior is crucial to market success.

. A report (conducted by Mintel 1995) showed only a very slight increase in green consumer since 1990 and a significant gap between concern and actual purchasing.

There are several factors contributing to it- Price Quality Convenience etc So this decrease in frequency and prominence of

Green claims have led the world to “Greenwashing phenomenon”

This is when a company hides the true effect of its products or actions on the environment, by making it seem as though the company is very much concerned about the environment.

WORLD IS AT A TIPPING POINT WAITING FOR A GREEN REVOLUTION

ARE WE FACING GREEN MYOPIA ??? UNLESS IT IS ADDRESSED WE CAN’T BRING CHANGE

AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK AMONG PLAYERS

CONSUMER

PRODUCER STATE

GREEN ENVIRONMRNT

GREEN MARKETING ENCOMPASES-

BEING GREEN

SPREADING GREEN

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Our definition

Green Marketing is an art of creating an awareness among consumers about carefully planned and developed eco compliance products and services using competitive pricing, promotion and distribution strategies that leads to increased uptake of product and services, increase in ROI and finally consumer satisfaction.

Green Marketing in India: Bundling Awareness and Technology to address Green Myopia India is the world's sixth largest and second

fastest growing producer of greenhouse gases. Delhi, Mumbai and Chennai are three of the

world's ten most populated cities. Two-thirds of city dwellers lack sewerage, one-

third lack potable water. India grows equivalent of another New York City

every year in its urban population. In 15 years, more than half of Indians will be

urban dwellers; one third will be slum dwellers and squatters

Across India, concern is mounting over an ever growing list of environmental problems and the need to find solutions becomes more urgent every day.

According to a survey conducted by BT-AC Nielsen ORG-MARG, Oil and petroleum sector is considered the greenest sector in India. ONGC is the greenest company followed by Reliance Industries.

India is a world leader in green IT potential. According to Global enterprise survey Indian respondents scored over respondents from 10 other countries in expecting to pay 5% or more for green technology if its benefits for the environment and return on investment (ROI) is proven.

These surveys showed a trend, of companies now increasingly going green and moving towards an environment friendly approach towards businesses.

Some examples of environmentally-beneficial products and services: Paper containing post-consumer wastepaper Cereals sold without excess packaging Shade-grown coffee beans Cleaning supplies that do not harm humans or environment Wood harvested from sustainable forests Energy-efficient lightbulbs Energy-efficient cars Energy from renewable sources of energy such as windmills and

solar etc.

Clearly the companies are focused on being more greener in their procedure but little has been done to spread the awareness among Indian consumers to adapt green products.

These are some of the success stories but if you look at it from Indian consumers (or consumption pattern) perspective-

There is very less uptake of solar batteries and equipments (cooker etc) though the products are present in Indian market from last 15 years.

Recently launched Samsung solar mobile Guru is not finding foot in market due to inconvenience in solar charging.

Very less consumption of CFL bulbs due to high cost. Drive has been launched by Mararashtra government to

ban plastic in Mumbai still the consumption of plastic bags is very high in both rural and urban sector etc.

(Data gathered from discussion with various dealers, consumers and manufacturers)

These are some of the examples that show low penetration of green products in Indian market. The various factors contributing to this consumer behavior are:

India is a cost driven market. Since development of green product involves huge investment in R&D activities which in turn increases the cost of product.

Green products require renewable and recyclable material, which is costly Water treatment technology, which is too costly Majority of the people are not aware of green products and their uses Majority of the consumers are not willing to pay a premium for green products Degree of acceptance for new product is very low among Indian consumers. Less developed means of communication. Most of the new technologies require

different mode of communications to penetrate new areas but due to less developed means of communication in India awareness remains low for new technologies.

Language barriers. India is a country of many languages and cultures. Due to language barrier many parts of India hardly get information.

Use of redundant technologies in most of the companies in India. Low percentage of Literacy.

While discussing with several consumers it has been found that-

Indian consumers want ready to use technology.

They don’t give review of product; never provide feedbacks on the performance of

the product, they hardly complaint and hardly use their warranty cards.

Also there is very less brand loyalty among Indian consumers.

Marketing ‘Green’ in developing countries is a challenging task. Despite all the barriers India is leaving its footprint in the field of environmental awareness.

Avenues in India Use of solar energy. India gets plenty of sunlight due to

its proximity to the equator. It receives an annual average of 4-7KWh per day for every square meter, meaning the country receives a lot more sunlight than what it can use in a year, making it an abundant source of power.

India has the best opportunity to be in the forefront of the sustainable world with our Fair Trade certifications & organic cotton certifications. Developing an organic agricultural business we can improve our food chain, agricultural programs & health issues.

Handicraft and handmade papers, huge market for paper bags to replace plastic bags

Conclusion

Green marketing assumes even more importance and relevance in developing countries like India & Pakistan.

The significance India will have on the the world in the future will be extraordinary, we’ve only scratched the surface.

The thing that remains to be seen is the importance green business has in India.

Tackling mass poverty is the first thing that is happening, and it should be the first thing that the country emphasizes.

India will be an economic powerhouse, and could be a leader in green business if they choose to be. The direction that business takes in India will have massive impact on the world.

If business leaders there recognize the vast potential that green business has, and then decide to invest time, money, and effort, the world would only benefit.

India is in a very unique position right now, they could either lead the world, or potentially aid in its destruction.

THANK YOU

SPECIAL THANKS TO- PRAMOD KUMAR (Senior Design

Engineer, NTPC Delhi) SWAMYENATH CHENNA (Student

DYPDBM)AND NEHA JANGID (Student DYPDBM)